Supply Chain Market Update
28th October 2020
International Supply Chain
- China suffered a loss of 40% in exports during February 2020 but has since recovered that loss as of August 2020 and is now 10% ahead when compared to their position in 2019.
- Global trade is decreased, with the lowest point experienced in May 2020. This places it 10% behind its original position in 2019.
- Most of the current global trade recovery is due to China.
- In August 2020, US trade was 10% behind the position it had in August 2019.
- Industrial components, agricultural products, and machinery are the leading US export.
- Retail grew 7.8% in September compared to previous months.
- Furniture stores grew 7.5% in 2020, compared to only 1.7% in August 2019.
- Electric sales dropped 6.1%, accelerating the previous downward trend of -4.7% observed in August.
- Household appliances imports grew 45.5% in September 2020.
- Electrolux 79.9%
- Miele 143.7%
- Consumer electronics only grew 9.5% since the previous month.
- Activewear has grown 290%, lead by H&M and Delta Apparel.
Domestic Freight Updates
- The expectation for truckload (TL) contractual rates to increase by double digits in 2021 is growing. High demand and tight capacity to push rates over 10% in 2021.
- Spot rates have remained positive year-over-year since mid-June, with the gap to the prior year continuing to increase. Currently, rates sit 40% higher than they were in 2019.
- Logistics executives do not expect spot truckload rates to soar much higher, but they do not think they will drop either, forcing shipper to collaborate more.
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